Sustainability in supply chain management: An overview. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. (2) 06-MAR-2018. and therefore sustainable practices must include SSCM (Wolf, There are numerous formal definitions of SSCM across the literature, but all include integration of business, practices with sustainability. Morali, O., & Searcy, C. (2013). Three characteristics of best practices identified in the SSCM literature include formalisation, effectiveness. inequality and injustice, and tackle climate change (IKEA Group. This includes a supplier commitment to comply with the IWAY requirements and to appoint, one, or several persons, the responsibility and authority to ensure IWAY compliance. CEO, Inter IKEA Group ”We are committed to. Therefore, scholars agree that firms incorporate a, s decision-making process, and therefore sustainable practices, ). We found that the combined effect of supply chain leadership and governance mechanisms affects both supply chain structure and supply chain learning and MNCs change their supply chain structure to facilitate supply chain learning. IKEA has successfully implemented a series of specific procurement sustainability policies, in addition to the. The IWAY Must incorporates the prevention of, onmental pollution that widely spreads and where its effects are difficult or expensive to correct. However, such a broad definition presents many, challenges for contemporary organisations such as difficulties in identifying a company, larger macro-economic perspective as well as the lack of guidance on how to effectively identify present and. This research integrates factors and practices relevant to environmental and economic sustainability and, thereby, encapsulates social responsibility in supply chain (SC) design and planning to enhance its overall performance. That quest has already begun to transform the competitive landscape, as companies redesign products, technologies, processes, and business models. Multi-tier supply chains of three MNCs were selected to investigate their proactive sustainability projects in China. effective merging of sustainability and growth, as particularly evident in their impressive SCM model. ����}���ۂn�ˢ��L����B����o����f�����fҎ�z���7��es��E�0��?5��]Y��5�jӌ�>�L�mq �GІs��;�������M��W|1��Jޟ�j�/��(�ހjU�5�|i~�7yS�eNv��h7���� The findings from an inductive study conducted in the United States and Europe focused on sustainability implementation efforts across supply chains are reported. The changing policy context, growing role of sustainable development, the transition to a green economy and the new European Union strategy Europe 2020 (2010) for smart, sustainable and inclusive growth leads to the “rethinking” of the main drivers of the sustainable competitiveness in the long prosperity and the future competitiveness leadership. No potential conflict of interest was reported by the author(s). Close. The relevant literature can be categorised under the themes of Sustainability, Supply Chain. (2008). The study has also surprising results: while collaboration emerges to be a weak outcome, only the economic dimension of sustainability appears as an outcome of KMI. Add to Collection. IKEA can successfully, implement sustainability policies across their entire supply chain to include all stakeholders and their various inter-, ests while maintaining a strong economic position. The model considers measurable key characteristics of the factors in a closed loop SC to have a tangible effect on the bottom line and improve the company’s image to customers with a keen view of sustainability in mind. supply chain with implementing sustainability within their firm by financial, technological or human resources. General conditions. Globalisation challenges increase the need to re-evaluate our approach to basic factors such as land, capital, tive approach to change their practices and explore opportunities through social and environmental programmes, ers, academics, and policy makers acknowledge the importance of proper SCM as a key driver to gain local and, This study provides several relevant findings. Vasileiou, K., & Morris, F. (2006). ability implementations across their supply chain. Additionally, in October 2014 IKEA took a position on palm oil, palm oil has the potential to be a sustainable raw material, oil sourcing. Such a large component of this case analysis is dedicated to, IWAY Standards as it embodies all aspects of Carter and Rogers (, rights, (2) minimisation of environmental impacts, and (3) maintenance of high standards of ethics and business, integrity. SCM is a means of understanding and refining the efficiency and effectiveness of activities. Inter IKEA Group Financial Summary FY17. exits and fire alarms, as well as conduct evacuation drills annually. They expect that the endeavor will add to their costs, deliver no immediate financial benefits, and quite possibly erode their competitiveness. IKEA goal is to become forest positive by 2020, and can have a positive impact on livelihoods, par-, ). A lack of supply chain integration was identified and companies reported a tendency toward a “mandated” implementation when extending efforts across companies. Its traditional home furnishing products inputs that increase waste during storage, transportation,,... 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